Wellmann Corporation Is a Service Company That Measures Its Output

question 101

Multiple Choice

Wellmann Corporation is a service company that measures its output by the number of customers served.The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for February. When the company prepared its planning budget at the beginning of February,it assumed that 35 customers would have been served.However,31 customers were actually served during February.
The spending variance for total expenses for February would have been closest to:

• A) $3,000 F
• B) $10,200 F
• C) $10,200 U
• D) $3,000 U

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Definitions:

Potty-Trained

The process by which a young child learns to use the toilet for urination and defecation independently.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Feed Himself

The act of an individual eating or consuming food without assistance from others.

Extinction

In behavioral psychology, the process by which a previously learned response decreases in frequency or disappears when reinforcement is withheld.